Gold Futures and Options

Gold Futures and Options Contracts give local investors access to the international gold price as determined by the New York Mercantile Exchange (NYMEX) through its Commodity Exchange (COMEX) division, a subsidiary of the CME Group. This highly liquid precious metal contract is cash settled in rands and can easily be accessed through
JSE Commodity Derivatives members.
These contracts are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from a favourable price movement.

Who is this for?

Gold is primarily bought as an anti-inflation hedge. It is also used jewellery and for industrial use. These contracts can be effectively used by commercial consumers, producers and fabricators of gold with a view to managing price risk. Producers can employ a short hedge and end-users can use a long hedge. Speculators also use these contracts to profit on short-term movements in the Futures Contract price.